Maruti Suzuki Car in Legal Problems

Oct 12, 2014

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Maruti Suzuki has run into controversy on its most important car in the sedan segment - the Maruti Ciaz. The country’s largest carmaker could face legal action from the government for accepting bookings on the Ciaz even before revealing the technical specifications or the pricing of the product.

The Consumer Affairs ministry is considering a legal action against the carmaker following a complaint from the former Railway Minister and MP Dinesh Trivedi, who claims to have received many complaints from the public about the company’s unfair trade practice of taking pre-launch bookings.

The ministry has asked the company to provide complete details of the pre-launch booking programme, and explain why action under the Consumer Protection Act, 1986, such as filing a suit by the central government should not be taken.

Maruti Suzuki, in their statement said that these bookings were completely voluntary and they haven’t violated any consumer rights.

Several carmakers apart from Maruti Suzuki including Hyundai, Mahindra and Tata, too, have implemented this strategy in the past during their respective product launches.